IMPINJ (NASDAQ: PI) and Neonode (NASDAQ:NEON) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.

Risk & Volatility

IMPINJ has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, Neonode has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Insider and Institutional Ownership

79.0% of IMPINJ shares are owned by institutional investors. Comparatively, 13.5% of Neonode shares are owned by institutional investors. 15.2% of IMPINJ shares are owned by company insiders. Comparatively, 14.9% of Neonode shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares IMPINJ and Neonode’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IMPINJ -13.82% -6.01% -4.62%
Neonode -45.94% -80.84% -39.17%

Valuation and Earnings

This table compares IMPINJ and Neonode’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IMPINJ $125.30 million 2.02 -$17.32 million ($0.29) -40.93
Neonode $10.24 million 2.51 -$4.70 million ($0.09) -4.88

Neonode has lower revenue, but higher earnings than IMPINJ. IMPINJ is trading at a lower price-to-earnings ratio than Neonode, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for IMPINJ and Neonode, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IMPINJ 0 6 1 0 2.14
Neonode 0 1 1 0 2.50

IMPINJ presently has a consensus price target of $24.17, suggesting a potential upside of 103.59%. Neonode has a consensus price target of $1.00, suggesting a potential upside of 127.79%. Given Neonode’s stronger consensus rating and higher probable upside, analysts plainly believe Neonode is more favorable than IMPINJ.

Summary

IMPINJ beats Neonode on 7 of the 12 factors compared between the two stocks.

IMPINJ Company Profile

Impinj, Inc. operates a platform that enables wireless connectivity to everyday items by delivering each item's unique identity, location, and authenticity to business and consumer applications. The company's platform includes endpoint integrated circuits (ICs) product, a miniature radios-on-a-chip, which attach-to and identify their host items; and connectivity layer that comprises readers, gateways, and reader ICs to wirelessly identify, locate, authenticate, and engage endpoints via RAIN, as well as provide power to and communicate bidirectionally with endpoint ICs. Its platform also consists of software layer that comprises ItemSense, an operating system for platform. In addition, the company's platform connects everyday items, such as apparel, medical supplies, automobile parts, drivers' licenses, food, and luggage to consumer and business applications, including inventory management, patient safety, asset tracking, and item authentication, as well as delivers real-time information to businesses about items they create, manage, transport, and sell. It primarily serves retail, healthcare, supply chain and logistics, airline, automotive, industrial and manufacturing, consumer experience, food, datacenter, travel, banking, and linen and uniform tracking sectors through distributors, system integrators, value-added resellers, and software solution partners in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Impinj, Inc. was founded in 2000 and is headquartered in Seattle, Washington.

Neonode Company Profile

Neonode Inc., together with its subsidiaries, develops and licenses user interface and optical interactive touch solutions under zForce brand name in the United States, Sweden, Japan, China, Germany, Taiwan, South Korea, Canada, Singapore, and internationally. It develops optical touch and gesture solutions for human interaction with devices, including automotive systems, printers, medical devices, PC devices, monitors, mobile phones, tablets, and e-readers. The company licenses its touch technology to original equipment manufacturers and Tier 1 suppliers. It also provides engineering consulting services. In addition, the company sells Neonode branded sensor products, such as AirBar PC touch products through distributors and directly to consumers. Neonode Inc. is based in Stockholm, Sweden.

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